The Indian stock market remained under pressure on Monday, August 24, tracking weakness in global markets as pressure in bond markets persisted and investors awaited further clarity on how tensions in the Middle East would unfold, with the US preparing to announce new sanctions on Iran.
Domestic factors also remained unfavourable for bulls, as financial stocks witnessed heavy selling, while auto and FMCG shares also ended lower.
The Nifty 50 closed 0.14% lower at the 24,219 level, while the S&P BSE Sensex fell 0.22% to 77,370. The broader market also mirrored the weak trend, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices closing in the red.
Global bond yields continued to remain elevated as worsening government fiscal outlooks and rising inflation concerns prompted investors to demand higher returns to compensate for growing economic risks.
Additionally, geopolitical tensions in the Middle East remained in focus, keeping crude oil prices elevated. Although prices retreated modestly during the session, they remained at one-month highs.
Traders are now awaiting further details of the US campaign to isolate Iran’s economy. The proposed measures could add further pressure on the country, whose economy has already been battered by earlier sanctions and a US naval blockade.
Tehran, however, dismissed the sanctions threat as another failed attempt to pressure the country, saying it had experience in dealing with economic blockades and could withstand the measures while maintaining trade and economic ties with other countries.
“The Indian equity market remained cautious amid elevated crude oil prices, geopolitical uncertainty, pressure on the Indian rupee, and mixed global cues. However, improved market liquidity and selective buying in key sectors provided some stability. Going forward, 24,150 remains the immediate support, while 24,200 will act as the first resistance after today’s breakdown. A sustained move above 24,200–24,300 could support a recovery, while a decisive break below 24,150 may increase downside pressure towards the 24,000 zone, said domestic brokerage firm Lemonn Markets.
BLS International leads losses as Schneider Electric, Gabriel India extend sell-off
BLS International emerged as the top laggard among Nifty 500 stocks, falling 10.5% to ₹242 apiece following media reports alleging visa fraud. Aegis Logistics also came under renewed selling pressure, dropping 5.4% to ₹1,342.
Losses in Schneider Electric persisted for the fourth straight session, with the stock falling another 5% to ₹1,155, its lowest level in more than two months. Gabriel India also extended its losing streak to a fourth consecutive session, tumbling 4.3% to ₹1,359.
Tenneco Clean Air, Coromandel International, Balrampur Chini Mills, CreditAccess Grameen, Godrej Industries, KPR Mill, Five-Star Business Finance, Cohance Lifesciences, Tata Technologies, Poonawalla Fincorp and Zee Entertainment were among the other major laggards, declining more than 3%.
Among PSU banks, Bank of Baroda was the worst performer, falling 2.4%, while Canara Bank also declined 2.2%.
Urban Company, Vishal Mega Mart and IDBI Bank shine
Despite weak overall market sentiment, select stocks managed to attract buying interest, with Vishal Mega Mart shares jumping 9.4% after the company announced the reappointment of Gunender Kapur as its managing director and chief executive officer (CEO).
IDBI Bank shares closed 7% higher at ₹88.50 apiece after moving sideways for more than five weeks.
Meanwhile, the sustained rally in gold prices kept Muthoot Finance in investors’ spotlight, with the stock gaining another 5.6% to ₹3,199. Keeping its winning streak intact, Urban Company shares rose another 6.46%, settling at a 10-month high of ₹168 apiece.
PTC Industries also remained higher for the second consecutive session, surging 5% to ₹21,670.
Other stocks, including Capri Global Capital, HFCL, Hexaware Technologies, Engineers India, Siemens, Zydus Wellness, Redington, Welspun Corp., and Prime Focus, also gained more than 3%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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